US Banks Unite for Regulated Blockchain Payments
Four major US banks - JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo - are joining forces to develop a shared tokenized deposit network. This collaborative effort is led by The Clearing House, a payments company jointly owned by major commercial banks.
The new network will allow participating institutions to clear and settle tokenized deposits at any time, connecting blockchain-based activity with existing payment rails. Tokenized deposits represent claims against money held at a commercial bank and are similar to stablecoins but remain within the regulated banking system.
Multinational companies will be the initial beneficiaries of this network, gaining access to programmable treasury operations, real-time liquidity management, automated payments, and cross-border transfers. The Clearing House CEO David Watson called this project 'a big move for the banks.'
Over a dozen institutions have pledged their support for this initiative, including BNY, HSBC, PNC, Santander, TD Bank, Truist, and U.S. Bank.